If you own a business or run a side hustle through an LLC, you may be wondering whether you can insure a vehicle under your company’s name. The short answer is: yes, you absolutely can—and in many cases, you should.
At Eugene C. Yates Insurance Agency, we work with countless Sacramento business owners to help them protect their assets, and commercial vehicle insurance is one of the smartest tools in the toolbox. Here’s what you need to know.
Why Insure a Car Through Your LLC?
If your vehicle is used for business purposes—whether you’re making deliveries, visiting clients, transporting tools, or simply branding your vehicle with a logo—it may be best to insure it through your LLC.
Here’s why:
- Liability Protection: A policy under your LLC keeps your personal assets shielded in case of an accident or lawsuit.
- Tax Benefits: Premiums for business-use vehicles may be deductible.
- Professionalism: A vehicle insured and branded under your business name gives your company a more established look.
- Clear Separation of Assets: Keeping business and personal expenses separate helps with clean accounting and protects your legal liability.
When Should You Insure a Car Under Your LLC?
In most cases, you should consider insuring the vehicle under your LLC if:
- The car is titled and registered in your LLC’s name.
- It’s used primarily or exclusively for business purposes.
- You have employees or partners who also drive the vehicle.
- You want commercial liability coverage beyond what personal policies offer.
What Type of Insurance Do You Need?
For business vehicles, you’ll need a commercial auto insurance policy. This is different from your personal auto insurance in several key ways:
- Covers business use of the vehicle.
- Offers higher liability limits.
- Can include multiple drivers.
- May offer coverage for equipment, inventory, or trailer attachments.
If the car is used personally as well, you may need hybrid or specialized coverage. A licensed insurance agent can help you determine what fits best.
How to Insure a Car Under Your LLC
- Register the vehicle under the LLC (this may involve retitling it if it was previously in your name).
- Get a commercial auto insurance quote tailored to your business activities.
- List all drivers (including employees or business partners).
- Choose the right coverage for liability, collision, comprehensive, and uninsured motorist protection.
Final Thoughts
If you’re a Sacramento business owner, freelancer, or contractor using a vehicle for work, putting that car under your LLC and insuring it properly could protect your business and save you money in the long run.
Need help getting started? The team at Eugene C. Yates Insurance Agency can walk you through the entire process and compare rates from top commercial carriers.
Call today for a fast, free commercial auto quote tailored to your business needs—or drop by our local office to speak with a licensed agent.